Budget fears as govt vows to relocate base

Dar es Salaam. The renewed urgency for government ministries and departments to shift to Dodoma has raised serious concerns over the looming budgetary crisis that could lead to misallocations and postponements of key development projects this financial year.

Indications are that the new impetus for the shift to Dodoma has not been a result of a plan and a specific budget but because of a politically motivated statement by President John Magufuli last week as he accepted the chairmanship of the ruling party (CCM).

President Magufuli said he would ensure his government moves to Dodoma before the end of his first five-year term in 2020.

Later, Prime Minister Kassim Majaliwa declared that he would to shift to Dodoma by September this year and wanted other ministries under his docket to follow suit.

Agriculture, Livestock and Fisheries minister Charles Tizeba was the first to announce that his ministry would be completely settled in Dodoma within two weeks.

The shift to Dodoma has serious cost implications, which analysts say, should not be taken for granted.

The first has something to do with the cost involved in transferring employees and their families and pay them transfer allowances.

“I’m not sure if this was budgeted for and that way, the government may opt to re-allocate some funding votes to finance transfer of the employees, prepare the necessary facilities and infrastructure,” says Prof Honest Ngowi of Mzumbe University Dar es Salaam College.

In 1973, the National Executive Committee of the then ruling and only political party — the Tanzania African National Union — resolved that the country’s capital, both for the government and the party, be moved from Dar es Salaam to Dodoma.

However, no legislation was passed on the relocation.

The law would have pushed the government to shift. Only the Capital Development Authority (CDA) was established through a parliament act as the government’s implementing agency for the shift.

CDA director general Paskasi Muragiri was recently quoted by the media as saying that they were ready to accommodate the government but its previous estimates indicated that Sh1.3 trillion was needed to prepare the necessary infrastructure.

The government is now working on the proposed law that will facilitate the shift. Mr Majaliwa recently said the government would table the bill in the September House sitting.

“Beyond monetary costs, there will also be psychological cost among employees and that may affect their performance between now and after moving to Dodoma. Efficiency of work may also be affected by the fact that suppliers and even banks will still be located in Dar es Salaam,” said economics Prof Ngowi.

“All in all, the shift to Dodoma needs a national debate to discuss whether the reasons that necessitated the move in 1973 are still relevant today. The nature of the regional economies and Tanzania’s security challenges which partly might have influenced the decision to have Dodoma as the designated capital have completely changed with time and technology,” he added.

Dodoma, being at the centre of the country, was regarded by the government as the ideal place for a capital because it would be easier for administrators to reach other parts of the country and for the people, especially from remote areas, to go to Dodoma to present their problems.

Others think that the government needs to plan properly about transferring to Dodoma so that the process becomes smooth.

Having waited for over 40 years before implementation, it is not something to rush for a month or two.

“Building on the statement of President himself that he intends to complete shifting before the end of his five-year term, government officials should have been reviewing where they failed and the kind of resources needed,” said Prof Delphin Rwegasira of the University of Dar es Salaam’s Economics Department.

“For this to be smooth, the government needs to do three things. It needs to be part of the five-year development plan; set its budget in the next four years; and make sure that it does not compromise with government’s development priorities.”

According to him, the most important question is about resources – financial, human and logistical resources – which must be fully addressed for smooth implementation.

Prof Samuel Wangwe, a seasoned economist, was optimistic that the government would smoothly move to Dodoma if it outlines a programme for shift in the next four years.

“I am optimistic that the current leaders are sure of shifting and that is easy for the remaining four years if they arrange a programme for shift,” said Prof Wangwe.

The finance minister and the permanent secretary could not comment on the budget issue as their phones went unanswered.